Chainlink (LINK) has recently faced the token unlock issue. This puts pressure on the price. But now a similar situation exists for Arbitrum (ARB).
LINK faces sell-off after massive token unlock
Approximately 18.75 million tokens were put into circulation on LINK this week. This means a 2.82% increase in circulation. However, token unlock has not yet made a big impact on LINK price. On the other hand, whale investors are enlarging LINK stock. This indicates potential selling pressure. Additionally, Chainlink’s network growth is at a weekly low.
Token unlocking generally leads to a higher circulating supply for the underlying altcoin. This is one of the negative developments for LINK at the moment. Now there is a growing possibility that LINK will experience significant selling pressure. However, this is not the first time the token has been unlocked for LINK. Previous such events have led to a significant price change.
🚨 18.75M $LINK ($117M) was unlocked from 4 Chainlink: Noncirculating supply contracts 6hrs ago, of which:
– 15.7M $LINK ($98M) was deposited to #Binance
– 3.05M $LINK ($19M) remains in multisig 0xD50fNotably, 82.75M $LINK has been unlocked since Aug 2022, of which 71.8M $LINK… pic.twitter.com/lqooYQKPt9
— Spot On Chain (@spotonchain) September 16, 2023
Whales support LINK price
Of course, there is a possibility that the bullish momentum observed in the last few days will cancel out the incoming selling pressure. Interestingly, LINK’s price action is currently trading at $6.22, down over 1.5%.
Other factors have a more significant impact on the price. For example, Chainlink’s whale-held supply recently hit a new weekly high. This indicates that a large whale purchase has occurred.
Chainlink’s collaboration with DCCT underlines potential growth
It should be noted that Chainlink is on the radar of the Depository Trust & Clearing Corporation (DCCT) on issues related to organic growth. DCCT is the largest securities settlement system in the world.
Chainlink’s participation in DCCT is the latest development involving the protocol, underscoring efforts aimed at entering the tokenized assets segment. The latter is a segment expected to be among the largest growth segments in WEB3.
.@The_DTCC settles quadrillions of dollars worth of securities transactions annually.#Chainlink CCIP unlocks interoperability for the tokenized asset market.
Discover how Chainlink and DTCC are collaborating in this new blog by Stephen Prosperi: https://t.co/DyqUc0miFH pic.twitter.com/y0uVMFsm35
— Chainlink (@chainlink) September 15, 2023
Now all eyes are on Arbitrum
LINK then puts an incentive program to a vote at the Arbitrum (ARB). It is planned to distribute 50 million ARB tokens through a community vote that will conclude on September 18, 2023. Voting will take place in two stages. While the budget and criteria are determined in the first round, the protocols that will receive grants will be selected in the second round.
Currently, the incentive program has 64% positive votes. The aim of the program is to support the growth of the network and encourage new development models. Voting will end on September 18. If approved, 50 million ARB tokens will be distributed by January 2024.
As Kriptokoin.com reported, the ARB price reached new lows this week with whale sales.
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